You too can Transform Debt into Wealth



To transform debt into wealth you need to follow a simple process, which will only work if you stop following the sheep. To transform debt into wealth is actually quite straightforward and alot easier than many so called 'marketing people' make out.

The perceived difficulty in turning debt into wealth lies in peoples' mental attitudes ie if they see everybody living in a certain way - buying their latest gratifications on credit for example - they follow what they do, safety in numbers, its a natural human condition. It's not necessarily the right way to think though.

The fact is if you want to transform debt into wealth, then stop copying what everyone else does. Yes they may have nice cars, houses etc but chances are they are living beyond their means. And they won't ever be wealthy!

So, are these new attitudes?

No of course not. Unfortunately we have been bombarded over the last few years with the message 'why wait till next month or next year to buy a product when you can have it now'.

You should not be buying depreciating products on credit!

I speak about this and how to transform debt into wealth further down....

Many people believe that to become wealthy you have to compete and become the best in your chosen field. They also believe that you literally short change everyone. This is definately not the case.

What you do have to do though is change your conditioned responses which were learned while you grew up. Realise that worry and fear, for example, are only in your head. Everytime you experience these emotions face them and go through a series of new 'rules' to keep yourself from spiralling into pessimism and panic. This will help you in your quest to transform debt into wealth.

Let's have a look at these new rules:

- what is the worst that can happen? Can I live with this? Is it really that bad?

- now then, what can I do to improve on the worst case scenario if it happens? Usually you can!

- having faced the worst situation 'in your head' and improved on it you should feel much better.

- then realise that 99% of worst case scenarios never happen anyway because they are only in your head!

Once you can overcome fear you will realise your true potential and you too can transform debt into wealth!!!

Your outside world is always a reflection of your inner thoughts. If you constantly think of lack and fear that's what you will get.

Lack?....What Lack?

In quantum physics it has now been proved that we only use 4% of the universes resources/energy. Where is the lack then? If I tell you everything begins with a thought and that energy (the thought) is never destroyed but can be transformed into anything you want, then you may have a clue what I'm talking about.

Why don't you transform debt into wealth?

Change your thoughts, face your fears, transform debt into wealth. The thought of facing your fears is always worse than actually facing them! Think only of abundance and wealth. Be grateful for everything you have no matter how small.

Become an inverse paranoid ie look at all the 'bad' situations you may find yourself in, and decide right now that there is the seed of something wonderful in every one of them!

Ok, so my little rant is over now.

We have talked a little about peoples' attitudes. What about the actual process to transform debt into wealth. There are a few important points to make here.

1. Bad debt - this is debt accrued after purchasing items that go down in value (depreciate) eg. the car, clothes, shoes, motorbike etc. Unfortunately with these items they all go down in price as soon as you have bought them.

Not only that, if you have bought them with a loan/credit card you have to also pay the interest as well. Not a good scenario. Stay away from this type of purchase. Save for the item. Put off gratification until you can afford it. Some people might say a car is absolutely necessary, well perhaps it is, but an expensive one isn't!

2. Good Debt (transform debt into wealth) - this is debt accrued after purchasing items that go up in value (appreciate) eg property, investments, stocks, businesses etc. This should be the only debt you have and it is better to use other peoples' money (OPM) to acquire it.

For example, buying a house for £100,000 with none of your own money.

When the property goes up in price say by 10% you have made £10,000 gross profit and used none of your own money.

An excellent resource which shows you how to do this is Deep's Tycoon Forum.

Deep even gives you ready made deals. You don't have to do any work whatsoever!

3. Compounding Effect - say you invest £1000 and each year it doubles in value. Would it surprise you to know that in year 5 your £1000 investment is now worth £32,000 and in year 10 £1,024,000. This is the power of compounding! And if you don't believe this can be done please look at this investment.

A little more about bad debt for those of you who have found yourself in that predicament. There are various methods of paying this debt off.

Some will say it is best to pay the debts with the largest interest rates irrespective of amount borrowed. Others will say pay the smallest debt off first (which tends to give you a boost when it's paid off) and means you can allocate those funds normally used to pay off the smaller debt to other debts. There is no right or wrong answer. It all depends on how much debt you have and income to pay it off.

Consolidating your debts into one loan or remortgage is usually a good option too. Just keep an eye on that annual percentage rate (APR). Credit cards usually have the highest, followed by personal loans and then mortgages. There is no single best way of doing it, it rather depends on how much bad debt you have.

Another way to transform debt into wealth is by legally writing off the debt which allows you to concentrate your efforts on wealth building. Unfortunately banks use the loan application with your signature on it to monetise funds. This is fraud and therefore it is possible to have these debts 'written off'. You can find more information on this pay off debt page.

This includes mortgages!! You see many 'loans' are not in fact that at all and may be challenged in court!

To sum up then, the main difference between the true rich and the 'glamorous' rich and indeed the rest of the population is mindset or attitude.

The true rich pay for all their depreciating assets and consumables using cash and they use other peoples' money, especially in the early days, to buy appreciating assets.(ie they literally transform debt into wealth)

Its not a difficult process to transform debt into wealth, however what people do find difficult is changing their attitude. It is so much easier to give in to their latest gratification or whim and buy something nice on credit.

Unfortunately a few months later when they have got used to having this new item they still have to pay for it. Money they should be using on wealth building!

I can sympathise to a certain extent because we are constantly surrounded with the wrong messages, through advertising, the media and financial institutions. However this is where you need to get hold of yourself, make your own goals and don't let outside forces influence your strategy.

Now then there is enough information on this page to transform debt into wealth....all of your debt!!!

If you choose to use it, fantastic.

If you don't, whose fault is that?

Only you can map out your future.

Just Do It!

return from transform debt into wealth to personal money management

return from transform debt into wealth to ultimate wealth


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Debt Inspiration

"If I owe you a pound, I have a problem; but if I owe you a million, the problem is yours."

John Maynard Keynes

"A man in debt is so far a slave."

Ralph Waldo Emerson

"Debt is the fatal disease of republics, the first thing and the mightiest to undermine governments and corrupt the people"

Wendell Phillips

"If it is your intention to be the master of your financial destiny, you must begin paying more attention to your money. Not all financial advertisements or advisors have your best interests at heart, so you must learn the difference between the myths that you are being told and sold, and the reality of how money works. It is never too soon to begin, it's true, but it's also true that it's never too late to start."



Suze Orman




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